Ask Reggi Your Question Now

Reggi is the free generative AI assistance for regulatory compliance
Ask a Question

Can I collect debit card information from participants in Alabama? What are the requirements?

Based on the documents provided, it appears that there are no specific laws or regulations in Alabama that prohibit the collection of debit card information from participants. However, you must comply with certain requirements to collect debit card information.

Requirements for collecting debit card information

  1. Establish written policies and procedures governing the utilization of debit cards, which must include a monetary limit on the amount of any individual purchase which may be made with a debit card, a monetary limit on the total monthly amount that may be purchased with a debit card, procedures to ensure that the sheriff has sole access to any debit card, debit card numbers, access codes, or security codes, procedures to keep accurate records of all purchases made with a debit card which shall be periodically reviewed during required audits, procedures to ensure that all debit card bills are carefully reviewed by the sheriff each month to make sure that no unauthorized charges appear on the bill, procedures to ensure that all debit card bills are paid in full on a timely basis each month to avoid service charges, late fees, or interest payments [1.1].
  2. Select the debit card provider or providers taking into consideration whether the debit card issuer requires an annual fee for utilizing the card, what interest rates, service charges, finance charges, or late fees will be assessed in the event a bill from the debit card issuer is paid late or the balance is not paid in full, whether penalties or fees will be assessed against the sheriff in the event the sheriff decides to terminate the debit card, and any other consideration deemed relevant by the sheriff [1.1].
  3. Ensure that any rewards or rebates earned from the card or cards shall be deposited in the appropriate account [1.1].
  4. Enter into appropriate agreements with one or more debit card issuers or other appropriate parties as needed to facilitate the acceptance of debit card payments, provided that no agreement may provide for the receipt of payments at a discount from the amount that would be owed were debit cards not accepted for the payment or withholding of administrative fees from the actual amount of the payments. Any agreement shall provide that it may be canceled without penalty at any time upon reasonable notice, and no agreement shall exceed three years [4.1].

Exceptions to notice and opt-out requirements for disclosure of nonpublic personal financial information

There are certain exceptions to notice and opt-out requirements for disclosure of nonpublic personal financial information. For example, the requirements for initial notice, opt-out, and service providers and joint marketing do not apply if the licensee discloses nonpublic personal financial information as necessary to effect, administer or enforce a transaction that a consumer requests or authorizes [5.2]. Additionally, the opt-out requirements do not apply when a licensee provides nonpublic personal financial information to a nonaffiliated third party to perform services for the licensee or functions on the licensee’s behalf, if the licensee provides the initial notice and enters into a contractual agreement with the third party that prohibits the third party from disclosing or using the information other than to carry out the purposes for which the licensee disclosed the information [5.3].

Based on the above requirements, if you plan to collect debit card information, you must establish written policies and procedures governing the utilization of debit cards, select a debit card provider, and ensure that any rewards or rebates earned from the card or cards shall be deposited in the appropriate account. Additionally, you must enter into appropriate agreements with one or more debit card issuers or other appropriate parties as needed to facilitate the acceptance of debit card payments, provided that no agreement may provide for the receipt of payments at a discount from the amount that would be owed were debit cards not accepted for the payment or withholding of administrative fees from the actual amount of the payments. Any agreement shall provide that it may be canceled without penalty at any time upon reasonable notice, and no agreement shall exceed three years. There are certain exceptions to notice and opt-out requirements for disclosure of nonpublic personal financial information.

Source(s):
Jurisdiction

Alabama